Comments on: F7 Revision http://www.accarevision.co.uk/f7-revision/ LSBF ACCA Revision Course – Special offers from LSBF for ACCA students Thu, 14 May 2009 07:00:29 +0000 hourly 1 http://wordpress.org/?v=3.6 By: Kodwo Armah http://www.accarevision.co.uk/f7-revision/comment-page-1/#comment-33 Kodwo Armah Wed, 06 May 2009 23:20:02 +0000 http://www.accarevision.co.uk/?p=140#comment-33 Response here:
We must account for all the net assets of the subsidiary at the consolidation date as we have added all the assets and liabilities all the way down the consolidated statement of financial position, and if you consider the accounting equation: Assets – Liabilities = Equity (Net Assets), we must increase the equity section of the statement of financial position at an equivalent level.

This is done in 3 stages;
Stage 1: Goodwill – this takes into consideration our share of net assets pre acquisition;
Stage 2: Non-Controlling Interests – this takes into account the non-controlling interest share of net assets at consolidation;
Step 3: Retained Earnings/Reserves – this takes into account our share of post acquisition reserves. Our share of pre acquisition net assets, plus our share of post acquisition net assets, plus the non controlling interest share of net assets at consolidation = the total net assets at consolidation and therefore balances the accounting equation.

]]> By: hussein basri http://www.accarevision.co.uk/f7-revision/comment-page-1/#comment-26 hussein basri Tue, 05 May 2009 09:36:28 +0000 http://www.accarevision.co.uk/?p=140#comment-26 the different between net asset at acqn date and and consolidation date is different in reserves because that reserve(post acqn reserve) will go to group consolidation reserves, when calculating big 3 reserves .

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